Forecast Of The Day: Discover’s Card Balance Outstanding

+43.26%
Upside
96.40
Market
138
Trefis
DFS: Discover Financial Services logo
DFS
Discover Financial Services

What?

Discover (NYSE:DFS) Card Balance Outstanding – the dollar value of the company’s credit cards loans outstanding – declined from $73 billion in 2019 to about $70 billion in 2021. Trefis expects the metric to rise to $71 billion in 2022 and to about $74 billion in 2023.

Why?

Relevant Articles
  1. What To Expect From Discover Financial Stock?
  2. Discover Financial Stock To Post Mixed Results In Q1?
  3. Is Discover Financial Stock Attractive At the Current Level?
  4. Discover Financial Stock Has An 11% Upside Potential
  5. Is Discover Financial Stock Fairly Priced?
  6. Forecast Of The Day: Discover Financial’s Discover Network Proprietary Volumes

The lower balances through 2020 and 2021 were due to weaker spending earlier in the pandemic and the potential impact of the U.S. stimulus which drove higher levels of pay downs.

So What?

With balances slated to rise and interest rates also trending higher, we expect Discover’s net interest revenues to improve. We value DFS stock at about $144 per share, 31% ahead of the current market price.

See Our Complete Analysis For Discover

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Returns Mar 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 DFS Return -11% -5% 53%
 S&P 500 Return -3% -11% 90%
 Trefis MS Portfolio Return -4% -14% 239%

[1] Month-to-date and year-to-date as of 3/16/2022
[2] Cumulative total returns since the end of 2016

Invest with Trefis Market Beating Portfolios

See all Trefis Price Estimates